EU signs new rules to achieve greater energy efficiency

The European Parliament signed new rules on renewables, energy efficiency and the governance of the Energy Union. This enables the European Union to move towards clean energy transition, and follow on the already adopted 2030 climate legislation, as well as meet the Paris Agreement goals.

The new rules are a key element of the Juncker Commission's political priority of creating a resilient Energy Union with a forward-looking climate change policy. This aims at giving Europeans access to secure, affordable and climate-friendly energy.

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Commissioner for Climate Action and Energy Miguel Arias Cañete added: "Four out of eight proposals of the Clean Energy for All Europeans Package have now been fully agreed, a signal that we are on the right track and that we will deliver on our pledge made at the beginning of the mandate. Our ambitious commitment to clean energy in Europe and the Paris Agreement will be made a reality by laws like the ones voted today. I now call on Member States to show similar ambition and leadership when submitting their draft National Energy and Climate Plans that are due by the end of this year."

The new regulatory framework focuses on two new targets for the EU in 2030:

A binding renewable energy target of at least 32% and an energy efficiency target of at least 32.5%;

These policies will lead to emission reductions by 45% by 2030 compared to 1990, instead of 40%.

The main achievements are divide into three categories:

Renewable Energy

The rules establish a binding, renewable energy target for the EU for 2030 of at least 32%, including a review clause by 2023 for an upward revision of the EU level target. It also aspires to achieve the following:

Improve the design and stability of support schemes for renewables.

Deliver real streamlining and reduction of administrative procedures.

Establish a clear and stable regulatory framework on self-consumption.

Increase the level of ambition for the transport and heating/cooling sectors.

Improve the sustainability of the use of bioenergy.

Energy Efficiency

The new regulation sets a new energy efficiency target for the EU for 2030 of at least 32.5%, with an upwards revision clause by 2023. EU will achieve this goal by:

Extending the annual energy saving obligation beyond 2020, which will attract private investments and support the emergence of new market actors;

Strengthening rules on individual metering and billing of thermal energy by giving consumers - especially those in multi-apartment building with collective heating systems – clearer rights to receive more frequent and more useful information on their energy consumption, enabling them to better understand and control their heating bills.

Requiring Member States to have in place transparent, publicly available national rules on the allocation of the cost of heating, cooling and hot water consumption in multi-apartment and multi-purpose buildings with collective systems for such services.

Governance of the Energy Union and Climate Action

As of the Energy Union, the new regulatory framework establishes a simplified, transparent governance, which promotes long-term certainty and predictability for investors and ensures that EU and Member States can cooperate towards achieving the 2030 targets and the EU's international commitments under the Paris Agreement. Namely, this governance:

Calls for each Member State to prepare a national energy and climate plan for the period 2021 to 2030, covering all the five dimension of the Energy Union and taking into account the longer-term perspective.

Aligns the frequency and timing of reporting obligations across the five dimensions of the Energy Union and with the Paris Climate Agreement, significantly enhancing transparency and reducing the administrative burden for the Member States, the Commission and other EU Institutions.

Now, the Council of Ministers will finalise its formal approval of the three laws in the following weeks.